The RBI's Monetary Policy Committee (MPC) began its three-day meet Tuesday to decide on key rates amid expectations that it would change stance to neutral on low inflation but may not cut rates due to fiscal challenges and rising oil prices.

"Market was volatile and faced stiff resistance at 10,950 levels. However, investors got bargaining opportunity in auto and private banks post the January auto sales and in expectation of dovish RBI monetary policy," said Vinod Nair, head of research, Geojit Financial Services.

Broader indices, however, ended in the red, with the BSE Midcap and Smallcap sliding up to 0.91 per cent.

Sectorally, realty, metals and FMCG indices ended in the red, while auto and financial services finished with gains.

On a net basis, foreign portfolio investors (FPIs) sold shares worth a net of Rs 112.13 crore Monday, and domestic institutional investors (DIIs) were net sellers to the tune of Rs 65.22 crore, provisional data available with BSE showed.